The sale of 66 St Georges Terrace represents the largest Perth office building sale in two years.
Oceania Capital Group has bought 66 St Georges Terrace for $75 million from RF Corval, representing the largest Perth CBD office transaction in two years.
The Indonesian-backed investment manager purchased the A Grade 11-storey building in a deal expected to settle today, marking the company’s second major Perth CBD asset.
It follows the recent state government announcement that Oceania Capital Group and Erben were the preferred proponents to develop the final Perth City Link lots at Kings Square.
Cygnet West’s commercial agency partners Wayne Lawrence and Tory Packer brokered the deal.
“Although there have been some smaller scale office transactions, this deal marks the first major CBD office sale for the past two years,” Mr Lawrence said.
“We think this transaction signals a turning of sentiment for the office sector, with yields now more attractive than other asset classes and the anticipated work from home impacts on occupancy not really eventuating in Perth.
“The offshore-backed private buyers seem to have more conviction in this market and for good reason – they have bought the last two office buildings that have sold on the Terrace.”
Ms Packer said the deal, which was one of the most significant transactions in Perth this year, demonstrated an uptick in confidence in the commercial property market.
Oceania Capital Group investment manager Vanessa Hudyana said the transaction aligned with the company’s strategy as it offered “strong tenancy fundamentals and significant potential”.
RF Corval chief investment officer Oliver Picone highlighted his company’s transformation of the asset.
“Following the execution an active management strategy, which took the occupancy of the building from 50 per cent when we acquired it to be effectively full now, we decided to dispose of the asset in line with our investment horizon,” Mr Picone said.
“While this involved selling into a relatively soft investment market, we managed to achieve a price above what we originally paid for it, which was pleasing.”
RF Corval bought the building for $71.82 million in February 2019.
The deal marked the largest Perth office transaction since Centuria Capital Group bought Allendale Square for $223 million in September 2022.
